Searching for: “Social media and the economy” results a long list of studies and opinions about the subject.It is a good attempt to quantify the effect, however, it is difficult to assign a number or even measure type of impact because a lot of factors are not measurable (like most of things are when it comes to the human kind).
Several researchers have tried to identify the nature of that effect. Routledge published a recent study that covers the subject with a conclusion that social media (SM) has a negative effect on economical growth stating that 1% increase in number of SM users contributes to decrease in GDP growth between 0.02% and 0.06%. (Study)
On the other hand, a lot of business professionals wrote about the positive impact SM has on the economy particularly because it facilitates doing business whether it is C2C, B2C, or B2B.
Another indirect effect is through culture remodeling through globalization and facilitating exposure to different cultures. Social media has a
“Global- shaking power”
as Farhad Manjoo stated in his article describing how current technologies have initiated social movements. In summary, SM has shifted world powers, helped groups like Brexiters in Britain to ISIS in the Middle East to other groups that used the effect of SM to spread their message and expand their reach to people.Exposure of the users to everything and everywhere is the main drive of change in their behavior and culture.
There is no doubt in the effect Social Media on economic growth.It is a two edged sword making it critical to raise awareness to make use of Social Media’s reach to spread the good…